CENTRAL BANK OF INDIA Vs. MAHBIR RICE MILLS

JUDGEMENT

(1.) The revision petition is directed by the Central Bank of India against the order dated 20.10.2001 passed by the Addl. Civil Judge (Sr. Divn.) Kurukshetra vide which he had declined to interfere in the sale of land measuring 28 Kanals 18 Marlas except that it was ordered that decree holder shall give a personal bond with one surety to the Court undertaking to pay from the proceeds of the sale/auction of land received by him such sum to the Bank which may be proved to be charge on the land.

(2.) Briefly stated, the facts are that Mahabir Rice Mills and others obtained cash credit hypothecation limit of Rs. 45 lacs on interest at the rate of 21.75% per annum with quarterly rests vide agreement dated 19.10.1996 for the working of the firm and Anita Rani, Smt. Sunita Rani and Smt. Nanda Rani stood guarantors for the aforesaid cash credit limit of Rs. 45 lacs on interest and other usual charges. A deed of guarantee in favour of the bank was executed. They also mortgaged their properties in favour of the Bank to secure and ensure the due repayment of the cash credit hypothecation limit of Rs. 45 lacs etc. by depositing their title deeds/sale deeds in favour of the Bank with an intention to create an equitable mortgage. The judgment debtors did not make payment of the outstanding dues and the Bank filed a suit for recovery of the due amount of Rs. 38,42,367.77 against the J.D. firm, guarantors, and mortgagors in the Debt Recovery Tribunal thereinafter referred to as the D.R.T. Jaipur on 23.9.1999 which has been subsequently transferred to the Tribunal, at Chandigarh and is still pending.

(3.) It was further averred that M/s. Mahabir Rice Mills obtained a decree against M/s. Daulat Ram Narinder Kumar etc. for the recovery of more than Rs. 9 lacs. In execution of that decree they got attached the property of the J.D. which was already mortgaged with the Bank and out of the said attached property land measuring 20 Kanals 18 Marlas was auctioned and 1/4th i.e., Rs. 4.40 lacs was deposited by the auctioner on 10.4.2001 in the Court.